First Duplex Analysis

[Ryan Landon]

Hey all, just looking for a little input/number check on a potential first deal that myself and another person are looking at going 1/2 on. 

Duplex: 2/1 on both sides (900sq ft a piece), built in 1991 right on the outskirts of a moderately growing area in Missouri. Property is in overall great shape with a brand new roof, appliances, floors, showers. HVAC will need to be replaced in ~5 years and got quoted 10K (total forboth sides.) Will only need (before inspection results) about $1,500 to "refresh"  the property. 

Target purchase price: 99K

20% down(10% each)

Seller is full 6% closing

20 year note @4.75%: $511/MO

Insurance/Taxes: $176/Mo

Rent: $600/side (could easily rent for $625/$650 looking at comps, and will be looking to bump to $625)

CAPX:$150/mo

Mx:$75/mo

Vacancy:$100/Mo

--Cashflow:$180/mo

*I know it's just shy of the $100/door but we wanted to keep it at a 20 vs 30 year. 

*Zero management cost as we are local. 

*We already have funds set aside for the HVAC just in case. 

*One side is already rented with a longterm tenant (mom&child) and I do not see a problem with finding someone for the other side as rentals in this middle price range are highly sought after. 

Any input/advise would be appreciated! Thanks all!

[Ryan Landon]

@Samuel Lynch Yes we actually had the property under contract but during the inspection found some foundation issues...nothing show stopping, but they needed to be addressed. Once that was discovered we went back into negotiond and unfortantly could not come to an agreement. 

Good news though, am going to look at a 4plex on Thursday and will resubmit the same offer on the duplex if it's still on the market in 2 months!